Slovakians talk after failed EU bailout vote

Slovakian political parties were in talks Wednesday in a bid to reach an agreement on ratifying a plan to strengthen the euro zone's bailout fund.

The talks come a day after parliament rejected plans to expand the European Financial Stability Facility (EFSF), toppling the government of Prime Minister Iveta Radicova.

After 10 hours of debate in parliament, the measure failed to pass by 21 votes.

The BBC reported a second vote with opposition support is likely to approve the plan, “possibly by the end of this week”.

The news sent European stocks up, while the euro hit a three-week high against the dollar.

Slovakia is the only country in the 17-member euro zone to have rejected an expansion of the rescue fund to 440bn euros (600bn dollars), which must be approved by all 17 member states.

(Read more on GlobalPost: Slovakia rejects euro zone bailout expansion)

The Financial Times said the fund was approved by three of the four parties in Radicova's center-right coalition. But it was opposed by the Freedom and Solidarity party (SaS).

It is understood that its leader, Robert Fico, supports extending the bailout fund – but wanted the government to fall before approving the measure in parliament.

The Financial Times writes:

"Now that this has happened, the (left-wing opposition) SMER will probably support EFSF, to the relief of Brussels officials who have been watching with increasing concern as internal Slovak politics threaten the passage of a measure aimed at calming the euro zone crisis."

The Associated Press said it was unclear whether a new coalition will be formed, or elections called, after the collapse of the government.

European Union officials on Wednesday urged Slovakia to ratify the bill quickly.